WASHINGTON, DC -- The National Council of Nonprofits reports that late last Friday, President Obama signed into law bipartisan legislation that funds the government through the current fiscal year (until September 30, 2016) and changes a significant number of tax provisions. Three charitable giving incentives are restored and made permanent in the tax portion of the law, originally titled the Protecting Americans from Tax Hikes Act of 2015 (PATH Act).
Tax and Regulatory Issues
WASHINGTON, DC -- Congress has passed a bill that makes the IRA charitable rollover and two other charitable giving incentives permanent. The Protecting Americans From Tax Hikes Act of 2015, which passed the House of Representatives on Thursday, 318-109, makes permanent charitable deductions for donations made directly from individual retirement accounts and provides enhanced deductions for donations of food to foodbanks and donations of land for conservation purposes. The Senate approved the provisions on Friday as part of a combined omnibus spending and tax extenders package.
WASHINGTON, DC -- US Reps. John Larson, Elizabeth Esty, Rosa DeLauro and Joe Courtney split from their party leaders Thursday in voting for a tax package that would make permanent a research and development tax break benefiting many Connecticut companies and tax credits to help low-income families. The PATH Act would also make the IRA Charitable Rollover and two other charitable giving incentives permanent law.
WASHINGTON, DC -- U.S. Rep. Jim Himes was the only member of Connecticut’s delegation Thursday to vote with his party’s leadership against a tax package. U.S. Reps. John B. Larson, Elizabeth Esty, Rosa DeLauro, and Joe Courtney voted in favor of the package, which makes permanent a child tax credit and tax credits to help low-income families.
WASHINGTON, DC -- Against the wishes of several nonprofit associations and charity regulators, the Internal Revenue Service has introduced a short form for small organizations to file for tax-exempt status. Instead of having to file a 26-page application form, would-be nonprofits with gross revenue of $50,000 or less and assets of $250,000 or less are now eligible to file a three-page application. Some nonprofits, such as hospitals, colleges, and universities, would not be eligible to use the new form, called the 1023-EZ. About 70 percent of new applicants, the IRS predicts, will be eligible for the short form.
WASHINGTON, DC -- Senate Republicans blocked progress on an $85 billion tax package on Thursday amid deep anger aimed at Senate Majority Leader Harry Reid.